Singapore Exchange Successfully Trials Blockchain for Tokenized Assets Settlement
Singapore Exchange Limited (SGX), along with the Monetary Authority of Singapore (MAS), has positively tested the implementation of blockchain technology for tokenized assets settlement, as per an SGX release delivered Sunday, Nov. 11.
The report discloses the data on the trial that began in August, soon after MAS and SGX had an alliance with U.S. stock market NASDAQ, “big four” referring company Deloitte, and Singaporean tech company Anquan. According to the release, the partners have created a blockchain-based solution for Delivery versus Payment (DvP) capabilities — a settlement procedure where the buyer’s payment for securities is due at the time of supply.
The trial has portrayed that financial institutions and corporate investors are able to carry out the exchange and final settlement of tokenized assets on different blockchain podiums concurrently. SGX hopes that this could upsurge operational productivity and decrease settlement risks. Moreover, the technology could further aid automate DvP settlement processes by implementing smart contracts, the report concludes.
Head of Technology at SGX, Tinku Gupta, also disclosed that the exchange has filed its first-ever patent:
“Based on the unique methodology that SGX developed to enable real-world interoperability of platforms, as well as the simultaneous exchange of digital tokens and securities, we have applied for our first-ever technology patent.”
As Cointelegraph has recently reported, Singapore-powered companies are actively testing blockchain solutions in different areas.
For example, in July, local government-directed service provider CrimsonLogic revealed its cross-border blockchain network for global trade in order to enhance the productivity of trade corridors between China and the Association of Southeast Asian Nations (ASEAN) nations. And in October, a major corporation offering electricity and gas transmission in Singapore, SP Group, introduced a blockchain-based renewable energy certificate marketplace to buy and vend solar energy worldwide.
In late October, NASDAQ also gained a U.S. patent for a smart-contract powered information release system, which would permit keeping data safe before the issue. The stock market awaiting decisions for other blockchain-related patents as well.